Investing.com - Gold prices stayed lower in North American trade on Thursday, holding on to earlier losses as investors digested the latest batch of U.S. economic data as well as a policy decision by the European Central Bank.
Comex gold futures were at $1,238.91 a troy ounce by 8:55AM ET (1255GMT), down $2.90, or around 0.2%. Gold prices finished a few cents higher on Wednesday, extending their streak of gains to a fourth session.
Data released earlier showed that the number of people who filed for unemployment assistance in the U.S. fell more than expected last week, nearing the lowest level in more than four decades.
A separate report revealed that manufacturing activity in the Philadelphia region slowed in July.
Gold prices have been well-supported in recent sessions amid fading expectations for another rate hike by the Federal Reserve this year.
Futures traders are pricing in less than a 40% chance of a rate hike by December, according to Investing.com’s Fed Rate Monitor Tool, as recent dovish comments from Chair Janet Yellen and soft inflation data raised doubts over whether policymakers will be able to stick to their planned tightening path.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Meanwhile, the ECB made no changes to its record-low interest rates and announced no new measures on Thursday, while leaving the door open to the possibility of further increasing asset purchases.
Earlier in the session, the Bank of Japan kept monetary policy steady as a two-day meeting concluded. The central bank also cut its inflation forecasts for fiscal years 2017/2018 and 2018/2019.
Also on the Comex, silver futures dipped 2.9 cents, or roughly 0.2%, to $16.26 a troy ounce, after hitting a more than two-week high of $16.34 a day earlier.
Among other precious metals, platinum was down 0.3% at $921.50, while palladium dipped 1.2% to $848.35 an ounce.